FICCI projects 9.1% GDP growth for FY22

India’s GDP is predicted to develop at 9.1% in 2021-22 as financial restoration, submit the second wave of the pandemic, appears to be holding floor, FICCI mentioned on Thursday.

FICCI’s Financial Outlook Survey additionally famous that the continued festive season would help this momentum.

Nevertheless, the trade physique cautioned {that a} doubtless surge in individuals’s motion throughout Deepavali can result in an increase within the variety of COVID-19 instances once more.

“The most recent spherical of FICCI’s Financial Outlook Survey has put forth an annual median GDP development forecast for 2021-22 at 9.1 per cent. This marks a marginal enchancment from the expansion projection of 9 per cent recorded within the earlier survey spherical (July 2021),” the chamber mentioned.

Decide-up in monsoon rains within the latter a part of the season and subsequent improve in kharif acreage is prone to hold development expectations of the agriculture sector upbeat, it mentioned.

The survey was performed in September 2021 and drew responses from main economists representing the trade, banking and monetary providers sector.

“The second quarter GDP information and the upcoming festive season ought to give a clearer concept of the place we’re headed on the restoration path and the way the demand state of affairs is panning out,” it mentioned.

With regard to heading again to the method of normalization, it was largely felt that the Reserve Financial institution could point out a change of stance from accommodative to impartial within the February 2022 coverage assembly, the survey mentioned.

“Nevertheless, a hike within the repo charge solely appears imminent within the subsequent fiscal yr (April 2022). Additionally, the trail in direction of constructive actual rates of interest is predicted to be a staggered one. A lot can be contingent on the build-up in home value ranges and the extent of tapering by the Federal Reserve,” it mentioned.